Downs council to look at museum budget again

After hearing in late October that the Hubbard Museum of the American West's museum fund balance could turn red in days, Ruidoso Downs city councilors next week are scheduled to consider fixes.

In a memorandum outlining budget adjustments and a reduction in force, Terri Mosley, the municipal finance director, offered seven options.

"All new options include reduced but obtainable revenues and all are the same, $328,800, (in anticipated revenues for the fiscal year). We have increased the (R.D. and Joan Dale) Hubbard Foundation contributions to $175,000 after receiving a letter committing to that dollar amount. We have decreased others (revenues) to be more conservative."

The museum was gifted to the city in 2005 by Ruidoso Downs Race Track owner R.D. Hubbard along with $1.5 million. Over the years additional funds have been advanced to help the city run the museum.

Mosley said expenditure adjustments also have been recommended. Each option proposed a transfer of $50,000 from the city's general fund to the museum. From the city's lodgers tax account, $78,000 already budgeted for non-promotional expenses would remain. Another $32,000 to promote the museum also would hold.

Museum employees could see a 10 or 15 percent reduction in salaries with a 37.5-hour workweek. Other scenarios include fewer employees. Three of the options would eliminate Jim Kofakis, the museum's director. Mosley's memorandum included fund balance amounts showing the levels at year end if all projected revenues are collected and expenditures kept within budget.

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On Oct. 22, the city council voted to transfer as much as $75,000 from the general fund, called a "temporary transfer," to keep the museum running.

The museum budget adopted last spring for the fiscal year that runs from July 1 through June 30, anticipated $551,500 in revenues. Transfer from other city accounts were put at $115,000. With budgeted expenditures anticipated to be $626,154, the museum's fund balance would be $40,346 at the end of the fiscal year. The options, with lowered expenses and revenues though higher in city account transfers, would leave an end of year balances ranging from $58,630 in the black to one with a negative $81,130.

The city council will look at the matter on Tuesday beginning at 5:30 p.m. at city hall. Council meetings are normally on Monday evenings, but next Monday is Veterans Day, a national holiday.